Information from the financial statements of ABC Corporation for year 2021 included the following: Common stock outstanding as of January 1: 100,000 shares Employee stock options, exercisable during 2021 for 10,000 shares of common at strike price of $20 per share. All options were outstanding at the beginning and end of 2021. Convertible preferred shares, convertible into 56,000 shares of common. During 2021, the company paid dividends of $2 per share on its 134,710 shares of preferred stock. Net income for 2021 was $788,420 Assume a tax rate of 40%. During the year, the market price of the company's stock averaged $25 per share. Required: Compute basic and diluted earnings per share for the year ended December 31, 2021.